Foresight launches new sustainable real estate investment fund

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  • FP Foresight Sustainable Real Estate Securities Fund will invest into listed, highly liquid Real Estate Investment Trusts
  • The Fund targets a 4% annual income yield, and capital growth over a five-year rolling period
  • Sustainability plays an integral role in stock selection and the UN Global Compact 10 Principles and four selected UN Sustainable Development Goals are embedded into the investment policy

Foresight Group LLP (“Foresight”) has launched the FP Foresight Sustainable Real Estate Securities Fund (“the Fund”). The Fund, which has received FCA regulatory approval, will invest into listed, highly liquid Real Estate Investment Trusts (“REITs”) and is the first UK-domiciled fund of its kind. It is targeting a 4% annual income yield and capital growth over a rolling five-year period.

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Through investing in listed REITs, the Fund will seek to benefit from the resilient growth trends of certain real estate sectors without compromising on liquidity. With a weighted average market capitalisation of over £8bn within the portfolio, the Fund has a high level of available liquidity.

The Fund will provide investors with a globally diversified exposure to real estate, investing in companies with assets in Europe, North America and developed Asia. The portfolio will focus on resilient and growth-focused sectors such as logistics, medical properties, social housing and data centres.

Sustainability is a core consideration in the investment team’s stock selection process. The Fund will invest only in the shares of companies that the team assesses deliver a net social or environmental benefit, comply with the Ten Principles of the United Nations Global Compact for business and meet one of four selected UN Sustainable Development Goals.

Since the introduction of Real Estate Investment Trusts (REITs) as an investment vehicle by the US in 1960, the listed real estate sector has become a mature and well-established asset class within public markets and is playing an increasingly important role in multi-asset portfolios. These assets are often characterised by delivering higher risk-adjusted returns, reduced portfolio volatility and increased inflation protection and transparency.

Mark Brennan, lead Fund Manager of the new global fund said: “As many traditional sources of income come under sustained pressure, the new FP Foresight Sustainable Real Estate Securities Fund enables investors to capitalise on the dependable returns associated with real estate investing alongside the liquidity provided by the public markets. The Fund provides global access to sectors of the property market that are well positioned to benefit from modern tailwinds, such as the growth of e-commerce and acceleration of digitisation, which can play a vital role in income-focused portfolios, while directly contributing towards a sustainable future.”

ENDS

For further information contact:

Ben Thompson, Foresight Group, bthompson@foresightgroup.eu | 020 3667 8155

NOTES FOR EDITORS

About Foresight Capital Management:

Foresight Capital Management (“FCM”) was set up in 2017 as a division of Foresight Group LLP, the specialist infrastructure and private equity investment manager, to manage Open Ended Investment Companies (“OEICs”). FCM’s OEIC portfolio currently comprises the FP Foresight UK Infrastructure Income Fund (“FIIF”) launched in December 2017 and the FP Foresight Global Real Infrastructure Fund (“GRIF”), launched in June 2019 with combined Funds under management exceeding £650 million.

FCM was named ‘Fund Manager of the Year’ at the PLC Awards 2018 in respect of the outstanding debut performance of FIIF.

Foresight Group LLP (“Foresight”) has been managing investment funds on behalf of institutions and retail clients for more than 36 years. It has in excess of £4.5 billion AUM across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs), Venture Capital Trusts (VCTs) and Inheritance Tax Solutions using Business Relief (BR) and Open Ended Investment Companies (OEICs).

Foresight is a leading renewables infrastructure investor with over £4 billion of clean energy infrastructure assets under management including wind, solar, bioenergy, hydro, battery storage and flexible generation. Foresight currently manages more than 240 renewable generation assets globally, with a total generating capacity of 2.3GW.

In private equity, Foresight has more than £600 million of funds under management and a UK SME portfolio comprising more than 90 companies, making growth capital and equity release investments from five regional institutional funds alongside a family of Venture Capital Trusts and Enterprise Investment Schemes.

Foresight is headquartered in London with regional UK offices in Manchester, Nottingham, Milton Keynes, Leicester, Edinburgh, Cambridge and Guernsey and international offices in Sydney, Rome, Madrid and Seoul.
www.foresightgroup.eu